Palomar’s net income expands to $46.5m in Q2’25

Palomar has reported a net income of $46.5 million for Q2 2025, up from $25.7 million in Q2 2024, while its combined ratio improved to 78.8%.

At the same time, the firm’s gross written premiums increased 28.8% to $496.3 million in Q2 2025, and net earned premiums increased 47.2%.

Palomar’s Q2 2025 losses and loss adjustment expenses were $46.2 million, all attritional losses.

The firm revealed that the loss ratio for the quarter was 25.7%, comprised of an attritional loss ratio of 25.7% and a catastrophe loss ratio of 0.0% compared to a loss ratio of 24.9% during the same period last year, comprised of an attritional loss ratio of 22.1% and a catastrophe loss ratio of 2.8%.

Palomar’s underwriting income for Q2 2025 was $38.3 million, resulting in a combined ratio, as mentioned above, of 78.8%.

This compares to an underwriting income of $25.6 million and a combined ratio of 79.1% during the same period of 2024.

The firm’s adjusted underwriting income in Q2 2025 was $48.4 million, resulting in an adjusted combined ratio of 73.1%.

Meanwhile, net investment income in Q2 2025 increased by 68.0% to $13.4 million.

This was, according to Palomar, driven by higher yields on invested assets and a higher average balance of investments held during the three months ended June 30, 2025, due to cash generated from operations and proceeds from the August 2024 public offering.

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our second quarter results highlight the sustained execution of our Palomar 2X strategic imperative.

“This strong growth underscores the strength of our product set and the efficacy of our balanced book of property and casualty and residential and commercial products.”

Armstrong continued, “Beyond our financial performance, we remain focused on achieving our 2025 strategic imperatives. Notably, the successful execution of our June 1 reinsurance program at an adjusted rate decrease of approximately 10% year-over-year should help drive consistent earnings for the remainder of 2025 and into 2026.

“We continue to make investments across our organisation that enhance the talent and operational scale of our business and ultimately strengthen the near-term and long-term prospects of Palomar.”

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